Interest+2A

John Derry Fx-2 A) You take the amount of from year 0(which is the original price) and multiply it by 1.08 (which is the multiplier.) by the second power because the power represents how many years. b) Year Amount of money, in dollars O 100 1 100 _x 1.08^1=108 2 100 x 1.08^2=116.64 3 100 x 1.08^3=125.97 4 100 x 1.08^4=136.04

c) 36.04%

FX- 3 Extend the table of compound interest for another eight years.
 * Years || Amount $ ||
 * 4 || 138.05 ||
 * 5 || 149.09 ||
 * 6 || 161.01 ||
 * 7 || 173.89 ||
 * 8 || 187.80 ||
 * 9 || 202.82 ||
 * 10 || 219.05 ||
 * 11 || 136.574 ||
 * 12 || 255.5 ||

a) Draw a graph for the table to the compound interest. Label each axis and sate whether the graph represents an arithmetic sequence (linear), a geometric sequence, or neither.

Neither.

b) Should the graphs for the lat two problems be discrete (points only) or continuous (connected)? Explain. Discrete.

c) Which credit union would you use for your investment? The credit union with the compound interest.

Sophia Moreno __**FX-21**__

a) *1.05 b) *.96 c) *1.03^12 d) *.98^12

NOTES: Adding or subtracting a certain percentage of every new principal per time unit (quarterly, annually)...

Balance * (100% __+__ X%) = new balance